(Atlantic) The City of Atlantic has again been selected for the federal Qualified Opportunity Zone program, which offers tax benefits to encourage private investment in economically distressed areas.
City Administrator John Lund says Governor Kim Reynolds intends to designate Cass County Census Tract 1905 as an Opportunity Zone. The designation is conditional and requires approval from the U.S. Department of the Treasury.
For the 2027 round, 175 Iowa census tracts met federal eligibility requirements, but the state was limited to 44 designations.
The program allows qualifying investors to receive federal capital-gains tax benefits for investing in eligible businesses and development projects within designated areas.
Lund says new rules also provide enhanced incentives for rural communities, including lowering the investment threshold for substantially improving existing properties from 100 percent to 50 percent of the property’s adjusted basis.
The designation could help Atlantic attract investment for building rehabilitation, housing and commercial redevelopment, although it does not guarantee new projects.
